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Trump signed an Executive Order on Friday that increased FHA mortgages 6/10 of 1%. That's about $500 more in 2017 for a $200,000 mortgage.
This will have no effect on mortgages for wealthy people, since they don't have FHA loans.
The flip side is that the FHA will get increased revenues to pay off those loans, if they default.
No it doesn't increase your pmt. It would only have been on pmts on new loans after it would have taken effect on Jan 27th. And it really isn't changing anything. It just didn't let an Obama proposed cut take place. It's the same now as it has been.
And it's needed to shore up the underfunded housing administration and avoid bailouts like happened in 2013.
If someone can't afford an extra 10.00 -30.00 a month in a mortgage pmt, they shouldn't be buying a home, or should be buying a cheaper home.
You know how to avoid pmi? Get a conventional loan with 20 percent down, or do an 80/15/5, or do a VA loan, if eligible..
Trump did taxpayers a favor by not letting the cut take effect. We are the ones that had to bail out the FHA in 2013. This will help prevent having to do it again.
Last edited by Spottednikes; 01-24-2017 at 12:37 AM..
I have a USDA loan which required no money down and offered a tax credit on 50% of the mortgage interest up to $2000. It's for "rural" areas. Like or not lots of people can't afford 20% down.... I could have put down 20% but why not keep my money invested in the market or use it for improvements? I could have paid the home 75% or more off if I sold everything and drained my accounts. I'm betting I can exceed the 3.125% interest rate plus .35% mortgage insurance keeping my money in the markets, plus the higher my total loan value the more tax credit money I get back, so there's no incentive to prepay until about year 8 or 9 if I live here that long.
Use what you have available to you. More power to these people with FHA loans. In any case it's a minor fee that still makes these loans more affordable than conventional loans in many cases.. no big deal. I'm not sure the actual differences between FHA and USDA as it's been 3 months since I closed on the home and I forgot what I researched. lol Here's a general research link thrown in for good measure.
No it doesn't increase your pmt. It would only have been on pmts on new loans after it would have taken effect on Jan 27th. And it really isn't changing anything. It just didn't let an Obama proposed cut take place. It's the same now as it has been.
And it's needed to shore up the underfunded housing administration and avoid bailouts like happened in 2013.
If someone can't afford an extra 10.00 -30.00 a month in a mortgage pmt, they shouldn't be buying a home, or should be buying a cheaper home.
You know how to avoid pmi? Get a conventional loan with 20 percent down, or do an 80/15/5, or do a VA loan, if eligible..
Trump did taxpayers a favor by not letting the cut take effect. We are the ones that had to bail out the FHA in 2013. This will help prevent having to do it again.
This.
The media is taking this and making a scare tactic out of nothing. It only effects new homebuyers who are getting an fha loan. If you have an existing one, you're fine.
This is a good thing. We keep giving people loans on houses that they can't afford. Hence 2008 all over again. If you can't afford it, don't buy it. In the long run, it's not a significant deal anyway. $500 bucks a year....divided by 12. Someone can't afford that? Really? Sit down.
Of course, the media already ran with it as a scare tactic cause ...Trump.
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